2026 U.S. Gift and Estate Tax Update
The U.S. Internal Revenue Service (IRS) announced on October 9, 2025 the 2026 gift and estate tax limits, which have important implications for personal and family financial planning.
For 2026:
The annual gift tax exclusion remains $19,000 per recipient.
Gifts to a spouse who is not a U.S. citizen increase to $194,000.
In addition, the lifetime estate and gift tax exemption rises to $15 million per individual, up from $13.99 million in 2025. This allows a married couple to transfer up to $30 million without federal estate or gift taxes. For couples who have already used part of their lifetime exemption, an additional $2.02 million can now be gifted starting in 2026, offering greater flexibility for wealth transfer.
These changes have significant implications for financial planning, family asset management, and intergenerational wealth transfer. Individuals and families considering large gifts or asset transfers are encouraged to review their current exemptions and tax strategies to optimize tax efficiency and ensure effective wealth succession.
For 2026:
The annual gift tax exclusion remains $19,000 per recipient.
Gifts to a spouse who is not a U.S. citizen increase to $194,000.
In addition, the lifetime estate and gift tax exemption rises to $15 million per individual, up from $13.99 million in 2025. This allows a married couple to transfer up to $30 million without federal estate or gift taxes. For couples who have already used part of their lifetime exemption, an additional $2.02 million can now be gifted starting in 2026, offering greater flexibility for wealth transfer.
These changes have significant implications for financial planning, family asset management, and intergenerational wealth transfer. Individuals and families considering large gifts or asset transfers are encouraged to review their current exemptions and tax strategies to optimize tax efficiency and ensure effective wealth succession.